Duet Baidu-Geely Ready To Duel With Tesla To Alibaba In The Electric Car Market

Electric vehicle illustration. (Tommy Krombacher / Unsplash)

JAKARTA - A website service provider, including Chinese search engine Baidu, announced that it will partner with Chinese automotive manufacturer Geely (Zhejiang Geely Holding Group Co. Ltd) to produce electric cars.

Baidu is said to provide 'smart driving capabilities', combined with Geely's design and manufacturing expertise. Yes, Geely is one of the largest car manufacturers in China. Geely is known to be the owner of the Swedish automotive manufacturer, Volvo, and has shares in Mercedes-Benz.

The duo of Baidu and Geely will not only be a competitor for Elon Musk with his Tesla. But also with other electric vehicle (EV) manufacturers, including manufacturers from China.

"We believe in combining Baidu's expertise in smart transportation, connected vehicles and autonomous steering with Geely's expertise as a leading car and EV manufacturer. This new partnership will pave the way for future passenger vehicles," said Baidu co-founder and Chief Executive Officer Robin. Li, launched the BBC.

Baidu established an autonomous propulsion unit called Apollo in 2017. Apollo supplies technology with artificial intelligence to a number of international and Chinese auto makers.

Electric vehicle illustration. (chuttersnap / Unsplash)

Potential market

China is known to be the main market for electric vehicles in the world. According to the International Energy Agency's data, of the 7.2 million electric vehicles on the roads globally in 2019, 47 percent of them were in China.

Meanwhile, data service provider S&P Platts estimates that electric vehicles will account for 20 percent of the total sales of new cars in China by 2025.

"China has become the world's largest market for EVs, and we see EV consumers demanding next-generation vehicles to be smarter," said Li.

Interestingly, the duet of Baidu and Geely is not only dealing with well-known electric car manufacturers such as Tesla, or preparing to face the prospective duet of Apple and Hyundai who are still question marks. A number of Chinese companies will also become competitors.

There's Chinese e-commerce giant Alibaba forming an EV joint venture with SAIC, a competitor of Geely. There is also Didi Chuxing, who is working with car maker BYD to create electric vehicles specifically designed for ride-hailing services.

Not to mention competition from internet giants like Tencent, Amazon to Alphabet, which have all developed car-related technology or invested in smart car startups in recent years.